There are countless advantages to hiring property management companies in Durham NC. However, a significant percentage of property owners are yet to reap these benefits partly due to their limited understanding of the fee structures of these professionals. While no property management company operates on a one-size-fits-all approach, there is a need to understand what makes up the fees and costs that you may incur.
Property management companies charge certain fixed amounts to new clients. These charges are meant to compensate for the time it takes to set up such account and could be for every unit under management or every customer. Whether the rental units in question are occupied or vacant does not matter in this case, in many instances.
These are the charges to a property management company that are based on the rental income you receive from your units. Property management companies usually withhold their commissions from the sums received from tenants and forward the balance to landlords. Commissions vary because of the different pricing structures adopted by property management companies, so shop around to find one that seems most suitable. Note too that there are significant differences between commercial and residential property commissions.
When rental units become vacant, some property management companies charge various types of fees. These are usually meant to cater for the advertisement of the vacant units, man hours used for showing the properties to potential tenants, finding tenants, and costs of preparing the paperwork to be utilized in the leases. The fees differ from one firm to the next but are usually half the expected monthly rent of the vacant unit. Mostly these fees are recovered from the first rent payments of the new tenants who occupy the vacant units.
Most property management companies retain employees to carry out certain work on client properties. As a consequence, they charge maintenance fees to cater to their salaries and the materials they use during their routine duties. Find out what types of activities are included in these charges beforehand.
Late Payment Fees
Property owners charge these fees to encourage tenants to pay on time. Property management companies, on the other hand, receive the amounts on behalf of landlords and retain 25-50 percent of the collected late fees.
In case the unfortunate process of evicting a tenant becomes necessary, a property management company will charge a fee if they handle it on your behalf. This fee is mostly fixed and does not involve court costs, which may become necessary if the legal process becomes necessary.
A property management company may charge for supervise the repair or replacement of items on a rented property. It is essential for property owners to enter into prior written agreements before the professional handles such tasks.
It is now easy to learn about the charges that you are likely to incur when you hire a particular property management company by using various online tools. Besides, some of these tools will offer comparisons of fees, commissions, and other charges to allow you to pick services that are most affordable. Remember that the fees and charges by property management companies in Durham NC are some of the significant considerations you need to keep in mind when selecting these experts.